Dont Cry Over Spilled Milk, Inc., a manufacturer of? mops, uses the weighted average method in its
Question:
Don’t Cry Over Spilled Milk, Inc., a manufacturer of? mops, uses the weighted average method in its processing costing system.? Don’t Cry uses a traditional costing system in the allocation of its manufacturing overhead? (MOH) to? production; MOH costs are allocated to production on the basis of machine hours logged during the period. Total estimated MOH for the period was 500,000 and total estimated machine hours were? 100,000. The following data concern the operations of the?company’s first processing? department, Assembly, for June 2012.
Beginning Work in Process | 800? mops, ?60% complete with respect to direct? materials, 10% complete with respect to conversion |
Costs in Beginning Work in Process | ?$3,712 (of this? amount, $1,296 is for direct ?materials) |
Units Started in June | ?16,000 mops |
Direct Product Costs Added During June | direct materials? $47,076; direct labor ?$216,213 |
Ending Work in Process | 300? mops, 60% completed with respect to direct? materials, 70% complete with respect to conversion |
During? June, 77,390 actual machine hours were logged during production.
(round all calculation to 2 decimal places. all answers should include commas and 2 decimal places i.e.? 1,000.00 not 1000.?)
The cost to assemble one mop in June was _______
The cost of goods completed and transferred out of the Assembly department during June equals ______
The conversion costs included in Work in? Process-Assembly at the beginning of July would equal ______
Cornerstones of Managerial Accounting
ISBN: 978-0176530884
2nd Canadian edition
Authors: Maryanne M. Mowen, Don Hanson, Dan L. Heitger, David McConomy, Jeffrey Pittman